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The Drachma, being a convertible currency, will be as hard as the Euro.

"Hard currency," in this context, means "foreign currency."

You buy your imports in foreign currency, and since you can't print it yourself, you have to trade for it. And at the moment, they're running a trade deficit.

Hence, "with what hard currency?"

The recession makes most tourists much more price sensitive which gives Greece with a radically devalued currency a huge advantage in capturing market share.

But in a shrinking market, as long as the recession drags on.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue May 31st, 2011 at 03:56:39 AM EST
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